What Do Analysts Think About SpareBank 1 Østfold Akershus’s (OB:SOAG) Earnings Trajectory?

The latest earnings announcement SpareBank 1 Østfold Akershus (OB:SOAG) released in December 2018 signalled that the business experienced a robust tailwind, eventuating to a double-digit earnings growth of 12%. Below, I’ve laid out key growth figures on how market analysts perceive SpareBank 1 Østfold Akershus’s earnings growth outlook over the next couple of years and whether the future looks even brighter than the past. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings.

See our latest analysis for SpareBank 1 Østfold Akershus

Analysts’ outlook for next year seems pessimistic, with earnings declining by -1.9%. But in the following year, there is a complete contrast in performance, with generating double digit 3.6% compared to today’s level and continues to increase to øre351m in 2022.

OB:SOAG Past and Future Earnings, March 12th 2019
OB:SOAG Past and Future Earnings, March 12th 2019

While it’s helpful to understand the growth each year relative to today’s value, it may be more beneficial to estimate the rate at which the business is rising or falling every year, on average. The benefit of this technique is that it removes the impact of near term flucuations and accounts for the overarching direction of SpareBank 1 Østfold Akershus’s earnings trajectory over time, which may be more relevant for long term investors. To compute this rate, I’ve appended a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 1.5%. This means that, we can anticipate SpareBank 1 Østfold Akershus will grow its earnings by 1.5% every year for the next few years.

Next Steps:

For SpareBank 1 Østfold Akershus, I’ve put together three fundamental factors you should further research:

  1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
  2. Valuation: What is SOAG worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether SOAG is currently mispriced by the market.
  3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of SOAG? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.